Definicja negative goodwill (FI-LC)

A credit-side differential that can occur during the consolidation of investments.

Negative goodwill appears in the stockholders' equity section of the balance sheet.

This occurs when the purchase price of a company acquired is less than the sum of the fair market value (or book value) of the net assets acquired.

Possible causes of negative goodwill are either a lower purchase price because of the poor prospects of the company to be acquired or an annual net income that occurred between the time of acquiring the shares and the first consolidation, but which was not distributed to the shareholders.